By Paul A. Harris
St. Louis, Nov. 6 - Pilgrim's Pride Corp. sold $100 million of senior subordinated notes due Nov. 15, 2013 (B2/B+) at par Thursday via PPC Escrow Corp. to yield 9¼%, according to an informed source.
Price talk was for a yield in the 9½% area.
Credit Suisse First Boston was the bookrunner on the Rule 144A offer.
Proceeds will be used to finance a portion of Pilgrim's Pride's acquisition of the ConAgra Foods chicken division. The proceeds are to be placed in escrow pending the completion of the acquisition, at which point PPC Escrow will be merged into Pilgrim's Pride.
The poultry producing company is headquartered in Pittsburg, Tex.
| Issuer: | PPC Escrow Corp. (Pilgrim's Pride Corp.)
|
| Amount: | $100 million
|
| Maturity: | Nov. 15, 2013
|
| Security description: | Senior subordinated notes
|
| Bookrunner: | Credit Suisse First Boston
|
| Coupon: | 9¼%
|
| Price: | Par
|
| Yield: | 9¼%
|
| Spread: | 485 basis points over 4¼% Treasury due August 2013
|
| Call Features: | Callable after Nov. 15, 2008 at 104.625, 103.083, 101.542, par on Nov. 15. 2011 and thereafter
|
| Equity Clawback: | Until Nov. 15, 2006 at 109.25 for up to 35%
|
| Settlement Date: | Nov. 21, 2003 (T+10)
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B+
|
| Rule 144A Cusip: | 73942GAA0
|
| Price talk: | 9½% area
|
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